The U.S. Securities and Exchange Commission issued a joint statement from the Directors of the Division of Trading and Markets and the Division of Examinations disputing claims that ending the Global Research Analyst Settlement (GRAS) has weakened protections against research analyst conflicts. It argues GRAS was designed as a provisional, time-limited stopgap, including a five-year sunset clause, while a broader regulatory framework was built for the full universe of firms and their research functions. The statement highlights the current framework implemented by the SEC and the Financial Industry Regulatory Authority (FINRA), including Regulation Analyst Certification, which requires analysts to affirm their views are their own and disclose compensation tied to recommendations, and FINRA Rule 2241 and Rule 2242, which address conflicts in equity and debt research respectively. It also points to FINRA’s responsibility for oversight of investment firms that conduct analyst research, and notes SEC monitoring of market practices through examinations and collaboration with FINRA to target the types of misconduct that led to GRAS.
U.S. Securities & Exchange Commission2026-01-23
U.S. Securities and Exchange Commission says post settlement rules provide stronger safeguards than the Global Research Analyst Settlement
The U.S. Securities and Exchange Commission (SEC) issued a joint statement disputing claims that ending the Global Research Analyst Settlement (GRAS) weakened protections against research analyst conflicts. The SEC emphasizes the current regulatory framework, including Regulation Analyst Certification and FINRA Rules 2241 and 2242, which address conflicts in equity and debt research, alongside ongoing oversight and collaboration with the Financial Industry Regulatory Authority (FINRA).